WASHINGTON, Dec 18 (Reuters) - Republicans in the U.S. House
of Representatives pressed the Obama administration on Tuesday
to turn over documents that might reveal more about the Federal
Housing Administration's shaky finances.

"It is imperative that Congress fully understand how and why
HUD was unable to anticipate the apparent rapid decline in the
health of (FHA's mortgage insurance fund)," six Republicans on
the House Financial Services Committee said in a letter to
Housing and Urban Development Secretary Shaun Donovan. HUD is
the FHA's parent agency.

Texas Representative Randy Neugebauer, a Republican member
of the committee who signed the letter, said the information
lawmakers are seeking would help them as they consider steps to
bolster the agency's operations before it runs out of cash.

"Taxpayers are heading toward another bailout and we're
trying to ascertain why - and more importantly - how we can keep
that from happening," he told Reuters.

An independent audit last month showed the FHA was facing a
projected $16.3 billion deficit, suggesting it may need to tap a
credit line with the U.S. Treasury to stay solvent for the first
time in its 78-year history.

The FHA, which insures 15 percent of all U.S. home purchase
loans, is the main source of funding for first-time home buyers
and those with modest incomes.

The letter asked Donovan to disclose how the audit was
prepared and to provide a clearer explanation as to why the
FHA's insurance fund had shrunk. Lawmakers requested a response
and relevant documents by January 18.

The lawmakers questioned "optimistic predictions" that were
provided by the agency last year, which they called a "stark
departure" from the latest audit.

FHA's capital reserves have been below levels mandated by
Congress for four straight years. Donovan has defended the
agency, saying it is taking aggressive action to protect the
insurance fund while helping the housing market fully recover.

Senate Banking Chairman Tim Johnson, a South Dakota
Democrat, has been pushing for quick Senate approval of a bill
aimed at reducing the FHA's need for a cash infusion that
cleared the House on a bipartisan vote.

The legislation would set a minimum rate for the annual
premiums paid for mortgage insurance, allow the FHA to exclude
poorly performing lenders from the program and tighten the
agency's oversight of delinquent loans, among other measures.

But with time running out on the legislative clock and with
some Senate Republicans interested in more comprehensive
reforms, it appears likely any legislative effort to strengthen
FHA's balance sheet will get pushed into next year.

"That bill has languished like so much does in the Senate,"
said Representative Scott Garrett, a New Jersey Republican
member of the House panel who also signed the letter. "I doubt
we're going to see any resolution here before the end of the
year."